When mortgage rates are lowest, homeowners who are refinancing will be able tosave the most money possible. If you were able to have an idea of what to expect from mortgage rates over the next 6 months, you would have a huge advantage. Well, here are my mortgage interest rate predictions for 2009 and 2010.

Mortgage refinancing when the interest rates are the absolute lowest, is the key to saving the most money possible through refinance. When rates are lowest, so are your chances of getting the best mortgage deal possible. Early in 2009, mortgage rates were very low, around 4.69%. This represented an all time low interest rate, and many homeowners took advantage.

When the rates were that low, homeowners across the country flocked to get help and refinancing. The mortgage lenders and banks were quickly overwhelmed with a massive amount of paperwork, and needed to do something to stem the tide, and catch up on the pending applications. Interest rates were raised by .5% a few months ago, bringing the average to 5.19% for a typical 30 year mortgage. This increase was not drastic enough to stop homeowners who truly needed help, but was enough to stop homeowners from applying just to save a little money every month. Currently, mortgage rates are around 5.05% and have been slowly dropping. This interest rate is still nearly half the rate homeowners pay who bought a home just 10+ years ago.

I predict mortgage interest rates will keep dropping until they hit their prior lows of 4.69%. This will be the lowest mortgage interest rates get, and this will happen around November 2009 and last through April or so of 2010. Many homeowners will use this time to get a mortgage refinancing for themselves, and a much lower interest rate. If you can wait until the rates get lower, you should, but if you need help do something now. Interest rates are still very low, and refinancing will help millions of homeowners save money every month. Weigh your options, and take this mortgage rate prediction into consideration.

-M Petrone

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